In a video statement posted on the bank’s website, along with their Q1 Interim Management statement, the chairman Sir Philip Hampton said the bank should be ready to return to the private sector next year.

Sir Philip said he expected the government to start selling shares from the middle of 2014.

The video was released alongside data that showed RBS reported a return to profit for the first three months of the year. The figures showed a pre-tax profit of £826m after chalking up losses last year.

In the first quarter of 2012, RBS lost £1.5bn and in the final quarter, lost £2.2bn.

Sir Philip Hampton said in the video:

“What we want to do is have a business that is performing well… enabling the government to start selling shares from, let’s say, the middle of 2014 on – it could be earlier, that’s a matter for the government – but certainly we think the recovery process will be substantially complete in about a year or so’s time.”

Stephen Hester, Group Chief Executive, said of the results:

“These results show pleasing progress in delivering a strong and valuable RBS for all our stakeholders. We expect to substantially complete the Bank’s restructuring phase during 2014. We are seeing the start of a pick-up in loan demand and have a strong surplus of funds ready and available to fully support economic recovery. Across the Group we are working hard to improve what we do for customers and to better position the Bank for future growth.”